About Manoj Jewellers Limited

Business Overview

Manoj Jewellers Limited is engaged in the retail and wholesale of gold and diamond jewellery, adorned with precious and semi-precious stones. The product portfolio includes rings, earrings, pendants, necklaces, bangles, bracelets, chains, nose rings, armlets, gajrahs, and wedding jewellery, catering to diverse tastes and occasions.

The company is committed to high-quality craftsmanship, backed by strict quality control, timely delivery, and competitive pricing. Jewellery is hallmarked by BIS-recognized Assaying and Hallmarking Centres, ensuring purity and consumer trust. With a focus on design variety, on-time service, and transparency, Manoj Jewellers Limited upholds strong standards of customer satisfaction and product integrity.

As of December 31, 2024, the Company have 14 full-time employees. The Banker to the Company is Axis Bank Limited.

Industry Analysis

Indian Trade and Industry Overview

In the financial year 2023-24, India recorded its highest monthly merchandise exports, reaching $41.68 billion in March 2024. Overall, India’s goods imports fell by 5.66% to $675.44 billion compared to the previous year.

India is now working to expand its exports beyond traditional items like iron ore and farm products. New focus areas include electronics, pharmaceuticals, engineering goods, and food products like alcoholic beverages, ready meals, confectioneries, and value-added fruits such as jackfruit and bananas.

Exports of non-petroleum and non-gems and jewellery products slightly increased by 1.45%. Major contributors to export growth were electronic goods, drugs, engineering products, iron ore, textiles, ceramics, and glassware.

China has once again become India’s largest trading partner with trade worth $118.4 billion, slightly ahead of the US at $118.3 billion. Exports to China grew by 8.7%, driven by iron ore, cotton products, spices, and plastics. Imports from China also grew by 3.24%, led by technology products and industrial materials.

Meanwhile, exports to the US fell slightly by 1.32%, and imports from the US dropped by about 20%.

Other important trading partners were:

• UAE ($83.6 billion)

• Russia ($65.7 billion)

• Saudi Arabia ($43.4 billion)

• Singapore ($35.6 billion)

Trade with Free Trade Agreement (FTA) partners like South Korea, Japan, Australia, and ASEAN countries grew by almost 38%.

India’s global ranking in merchandise exports improved from 19th to 17th place, with exports reaching 115 countries.

While merchandise exports declined by 3% to $437.1 billion, services exports grew to $341.1 billion.

Distribution Network in India

India’s retail industry is one of the fastest growing globally. By 2032, the Indian retail market is expected to surpass $2 trillion, up from $690 billion in 2021.

The traditional distribution system in India has three layers:

• Redistribution stockists (RS)

• Wholesalers

• Retailers

For example, a large FMCG company may have:

• 40–80 RSs

• 100–450 wholesalers

• 250,000–750,000 retailers

Margins for wholesalers in FMCG products are typically around 4-5%.

With the rise of shopping malls and e-commerce, companies are now delivering directly to large retail outlets. India's e-commerce sector is booming, expected to grow from $72 billion in 2021 to $350 billion by 2030. India could have 500 million online shoppers by 2030.

The food and grocery retail sector alone was worth $858 billion in 2022 and is expected to grow by about 8% annually.

Indian Gold Industry

Gold has a deep cultural importance in India. It is seen as a symbol of wealth, tradition, and financial security.

India is the fifth-largest gold importer and holds one of the largest gold reserves in the world.

Gold is essential during festivals like Diwali, Durga Puja, and Akshaya Tritiya, and especially in weddings, which account for about 50% of India’s gold demand.

Gold Loan Market

Many people pledge their gold jewellery to get short-term loans. While many still depend on informal lenders like pawnbrokers, organized players like banks and NBFCs are expanding their share.

Some NBFCs are asking for gold loans to be recognized under priority sector lending, as they are vital for small businesses, farmers, and women borrowers.

Financialization of Gold

New options like Sovereign Gold Bonds (SGBs) and gold ETFs allow people to invest in gold without physically buying it. This reduces storage risk and helps gold become a more recognized financial asset.

Rising Gold Prices

In 2024, gold prices in India crossed ₹70,000 per 10 grams due to:

• Geopolitical tensions

• Inflation concerns

• Central bank buying

• A weaker rupee

Even with rising incomes, people are shifting some savings to formal banking products. But gold remains a trusted and emotional investment, especially during weddings and festivals.

In summary:
India’s trade is diversifying beyond traditional products, the retail and e-commerce sectors are expanding rapidly, and gold continues to be a key part of Indian culture and finance, even as the country adapts to new global and economic trends

Business Strengths

• Diverse Product Portfolio
Offers a wide selection of traditional, contemporary, and fusion jewellery across various price points and customer segments, supported by a network of independent manufacturers across India.

• Experienced Leadership
Promoters bring over 15 years of industry experience, with strong relationships across the value chain and a professional management team skilled in jewellery, finance, and marketing.

• Customer-Centric Approach
Focuses on delivering high-quality jewellery at affordable prices, backed by a deep understanding of customer preferences, timely execution, and design intricacy that supports premium pricing.

• Strict Quality Assurance
Implements rigorous quality control, ensures on-time delivery, and guarantees BIS-hallmarked products, enhancing consumer trust in gold purity and product reliability

Business Strategies

• Design Innovation & Quality Focus
Plans to continuously introduce new designs across customer and price segments while maintaining strict quality control, timely delivery, and competitive pricing, aligned with evolving consumer trends.

• Strengthening Customer Relationships
Emphasizes consistent engagement and timely delivery of quality products to build long-term customer trust, support repeat business, and align product development with market trends.

• Data-Driven Marketing & Sales
Invests in marketing strategies, customer analytics, and lifecycle management tools to enhance consumer targeting, improve retention, and drive revenue growth.

• Scalable Expansion Model
Aims to expand the showroom network by leveraging a proven, scalable business model, strong brand presence, and insights into regional customer behavior for strategic market penetration

Business Risk Factors and Concerns

1. Impact of Raw Material Availability and Price Fluctuations
The business is highly dependent on the timely availability, consistent quality, and stable pricing of gold bullion, diamonds, and other precious materials. Fluctuations in supply and cost, driven by economic conditions, production levels, competition, and regulatory changes, could adversely impact operational performance and profitability.

2. Sensitivity to Consumer Discretionary Spending
Jewellery purchases are discretionary and influenced by factors such as economic conditions, disposable income levels, employment rates, interest rates, inflation, and availability of consumer credit. Any reduction in consumer spending could significantly affect sales, financial condition, and overall business outlook.

3. Regional Concentration Risk in Tamil Nadu
Operations are concentrated in Chennai, Tamil Nadu, increasing exposure to regional economic, regulatory, or environmental disruptions. Any adverse developments in this area could negatively impact procurement, sales, and the overall stability of business operations.

Manoj Jewellers faces key business risks related to raw material price volatility, consumer spending patterns, and regional dependence on Tamil Nadu. Managing these factors is crucial for sustaining growth and financial stability.